KUALA LUMPUR (Feb 26): KPJ Healthcare Bhd (KL:KPJ) ended the year with record quarterly net profit and revenue for the three months ended December (4QFY2025), lifted by lower tax expenses.

Net profit rose 10.27% in the quarter to RM132.9 million or 3.03 sen per share, from RM120.52 million or 2.77 sen per share a year ago, while revenue climbed 10.25% to RM1.15 billion, from RM1.04 billion, a bourse filing showed.

The group declared a higher single-tier dividend of 1.35 sen per share, up from 1.05 sen previously, bringing the full-year payout to 4.23 sen, from 4.15 sen for FY2024. Shareholders on the register as of March 30 will be entitled to the payout.

In the quarter, operating profit margins eased to 18.5% from 20.3% a year earlier, pressured by a 19.3% increase in administrative expenses. However, the bottom line was supported by lower tax expenses which was 25.1% lower at RM44.38 million.

The effective tax rate stood at 24.3% versus 32.5% in 4QFY2024, with KPJ noting the rate remained above the statutory 24% due to non-deductible expenses and unrecognised tax losses.

For FY2025, net profit rose 3.4% to RM365.93 million from RM353.82 million, while revenue increased 9.2% to RM4.26 billion from RM3.9 billion.

KPJ said it remains cautiously optimistic for FY2026, supported by asset optimisation, capacity expansion and operational efficiency initiatives. The Ministry of Health’s decision to defer the implementation of the Diagnosis Related Group (DRG) system to 2027 also provides greater clarity for a smoother transition, it said.

Shares in KPJ closed down one sen or 0.3% at RM2.87 on Thursday, valuing the group at RM12.99 billion. Over the past year, the stock has gained 15.7%.